Nearly 4 million households receiving Universal Credit on the usual fee will obtain an additional £295 yearly from April, the Department for Work and Pensions (DWP) has confirmed.
The increase means single claimants aged 25 and over will see month-to-month payments rise from £400.14 to £424.90, a further £24.76 per 30 days.
It marks the primary sustained above-inflation rise to the profit and types a part of a wider package deal of welfare reforms.
The Government mentioned the adjustments are designed to assist folks into employment whereas addressing cost-of-living pressures.
Ministers have pledged to speculate greater than £3.5billion into employment assist by the top of the last decade.
For a single individual aged 25 or over, the increase equates to round £295 further per year in money phrases.
This determine is projected to rise to £760 yearly by the top of the last decade.
The coverage is meant to make sure those that are searching for work or already employed retain extra revenue as they progress.
Universal Credit receivers will obtain an additional £295 yearly
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The reforms come amid altering labour market circumstances.
The Office for National Statistics estimated unemployment for these aged 16 and over reached 5.1 per cent between September and November, in contrast with 4.4 per cent throughout the identical interval in 2024.
Alongside the increase, adjustments will probably be launched for new claimants with well being circumstances.
From April, a decrease Universal Credit well being ingredient fee of £217.26 per 30 days will apply to new candidates, in contrast with the present larger fee of £429.80.
The present system ends in these receiving health-related assist being paid greater than double the usual allowance
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The DWP mentioned the prevailing system ends in these receiving health-related assist being paid greater than double the usual allowance with out ample employment assist.
Those with essentially the most extreme or lifelong circumstances, people nearing finish of life and all present claimants will proceed to obtain the upper fee.
Work and Pensions Secretary Pat McFadden mentioned: “The benefits system we inherited was rigged with the wrong incentives and wrote people off instead of backing them.”
He added: “These reforms put more money in the pockets of working people on Universal Credit, whilst ensuring those who can work get the support they need to do so.”
Mr McFadden mentioned: “By boosting the standard allowance and investing in proper employment support, we’re building a welfare system that rewards work and offers people a route to a better future.”
The DWP mentioned the earlier system created “perverse incentives” that the April reforms are meant to deal with.
